Ginnie Surpasses Freddie in MBS Issuance

For the first time in decades, Ginnie Mae is outpacing Freddie Mac in the issuance of mortgage-backed securities. For the year ending September 30, Ginnie Mae guaranteed $418.1 billion in residential MBS. During the same 12-month period Freddie issued $382 billion. Freddie's MBS issuance rose 22% over the past 12 months, while Ginnie Mae issuance jumped 55% — due mostly to a dramatic increase in the origination of Federal Housing Administration and Department of Veterans Affairs guaranteed loans. (VA loans backed nearly 20% of Ginnie Mae securities.) According to newly released figures, Freddie issued $31.8 billion in MBS during September. The GSE said it purchased $21.4 billion in refinanced loans during the month, down from $35.6 billion in August. The government sponsored enterprise also reported a 20 basis point monthly increase in its single-family delinquency rate. The percentage of Freddie loans 90 days or more past due and in foreclosure rose to 3.33% in September.